Dividend Adjusted Model to value Long Term Options
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It considers the expected dividend yield on the underlying asset.
This program calculates the value of a long term option (> 1 year) adjusting for dividends using the expected dividend yield on the current value of the asset.
The user has to input the following variables:
1. Current market value of the underlying asset
2. Variance in the ln(value) of the underlying asset
3. Strike price of the option
4. Riskless interest rate that corresponds to the life of the option
5. Time to expiration on the option
6. Expected dividend yield on the underlying asset.
Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)
This program calculates the value of a long term option (> 1 year) adjusting for dividends using the expected dividend yield on the current value of the asset.
The user has to input the following variables:
1. Current market value of the underlying asset
2. Variance in the ln(value) of the underlying asset
3. Strike price of the option
4. Riskless interest rate that corresponds to the life of the option
5. Time to expiration on the option
6. Expected dividend yield on the underlying asset.
Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)
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$100.00
